Continuation of pol/thread/172627146
Share your insights on brokerages.
Prove you're not a larper.
FX sell side sodomy and trader larpers
Ethan Morales
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Daniel Stewart
Would love to get kikeanon's opinion on my broker swissquote.
swissquote.ch
Evan Nelson
Sell side always wins in the long run, even at the institutional level. Too many tricks up their sleeve. Last look is only the tip of the iceberg.
Isaac Bennett
They win because they're parasites. Being another sell-side drone won't net you a comfortable unless you know someone (read: jewish nepotism).
Ultimately winning means beating the markets.
Isaac Carter
bumping thread with book recommendations
Chase White
SELL OR BUY FUCKING EURO?????????????
Isaac Bell
BITCH WHY U NO TELLIN ME?? IS IT GONNA DROP HARDER?? I AM 1:50 BALLS DEEP IN THAT SHIT
Benjamin Allen
I take it by the statement 'Sell side always wins' that customers eventually give back their earnings?
I want to expand on this because it's quite interesting.
If you take a look at the profits of HFT market making firms, which are kind of analogous to Sell side, their profits rise dramatically during periods of volatility in the stock markets.
There profits aren't quite as high when markets are not as volatile.
In order for any market maker to make money, through the spread, the counter party they enter into a trade with must not have the market direction move immediately in their favor.
When applying this to HFT market making firms' profits, it's clear that when the stock market is in low volatility (in which case it's generally trending), HFT market makers find it more difficult to make the spread, because price is more likely to move quickly in the counter party's direction. But, when markets approach randomness during volatile periods, where they tend to lack overall direction, HFT market makers are more likely to make the spread because price immediately going in a counter party's direction decreases in likelihood.
Relating back to 'Sell side always wins', the wider implication of this seems to me to be that market participants make a lot of money during trending periods of the market, but then struggle to adjust to changes in market conditions, and end giving back much of what they had made during periods of low volatility.
And to go even further, this is why most people struggle to beat a benchmark, like an index's return. They would've absolutely thrashed an index's return during trending conditions, but greed/ lack of experience/ lack of strategy in differing conditions/ or just not knowing when to stop, are what prevent people from keeping the immense amounts of money they can make during trending/ low volatility markets.
Most people just aren't good at trading markets which are not trending. They give it all back in volatility
Leo Rodriguez
To consistently outperform, most traders should find markets which are trending, and avoid markets which lack clear direction, particularly on higher time frames.
Juan Cook
>If you take a look at the profits of HFT market making firms,
There are no HFT in retail fx spot.
Do you actually know how HFT make money user? Because I dont think you do.